Retirement benefits assets grow 4% to Ksh1.58 trillion at December 2022
Retirement benefits industry asset grew from Ksh1.51 trillion in June 2022 to Ksh1.58 trillion in December 2022.
Retirement Benefits Authority attributes the marginal assets’ growth to slow recovery of the fi-nancial market after the adverse ef-fects of the Covid-19. In addition, uncertainties after 2022 General Elec-tion on presidential result and Rus-sia-Ukraine war slackened the growth.
Schemes continued to invest heavily in government securities. Investment in government securities accounted for 45 percent of the total assets. This was followed by guaran-teed funds which accounted for 18 percent. Investments in immovable property accounted for 15 percent and quoted equities 13 percent.
Most of the investments during the second half of the year recorded some growth except offshore investments, and cash and demand depos-its.
Asset under fund management
Sanlam Investments East Africa Company had the largest share of assets under management amount-ing to Ksh277 billion. This was 18 percent
The Authority expects retirement benefits assets to grow in the first half of 2023 owing to the rebound of the stock market.
of the total assets under fund management. Second was GenAfrica Asset Managers with as-sets totalling Ksh272 billion.
The top five fund managers during the period were Sanlam In-vestments East Africa, GenAfrica Asset Managers, Old Mutual Invest-ment Group Limited, Coop Trust Investment Services, and ICEA Lion Life Assurance Limited. The fund managers controlled the bulk of the investments of total assets totalling Ksh1 trillion.
National Social Security Fund’s assets
Total investments held by National Social Security Fund rose by Ksh13.21 billion to Ksh295.65 billion in December 2022. NSSF directly managed assets amounting to Ksh45.66 billion. Funds managed
externally rose by Ksh15.9 billion to Ksh249.99 billion.
About 60 percent of NSSF’s portfolio was invested in government securities. About 21 percent was invested in quoted equities and 13 percent in immovable property.
Assets to grow in first quarter of 2023
Retirement benefits assets grow through investment and contributions. The Authority expects that pension savings will continue to grow because of the several interventions initiated to promote pension coverage.
- The Government has established Kenya National Entrepreneurs Savings Trust (KNEST), a na-tional retirement benefits scheme targeting savings in the informal labour market which employs majority (83%) of the labour force. Majority of them are not covered by the existing retirement schemes.
- Introduction of Public Service Superannuation Scheme, a con-tributory scheme for civil serv-ants, teachers, and the disci-plined services.
- Implementation of NSSF Act, 2013, is expected to expand cov-erage and improve the retire-ment benefits of members.
Further, the Authority expects retire-ment benefits assets to grow in the first half of 2023 owing to the re-bound of the stock market.
‘We must exceed customer expectations to protect, improve our reputation’
I want to first extend my utmost gratitude for the sup-port retirement benefit industry continues to give me since I took office on 1st December 2022. I also want to thank you for your commitment and dedication towards ensuring that you achieve our common goals for the industry. It’s through the individual performance of each member of the retirement benefits industry that we will be able to protect interests of members and spon-sors.
Each one of us plays an important role in help-ing us delivery our mandate and I believe by working together we shall achieve great things. I offer to give you my help and support always, in all that you do.
Changes in the Board of Directors
During the 3rd quarter of the Financial Year, there were changes to the Board of Directors. The Cabinet Secre-tary for the National Treasury and Economic Planning appointed Mr Nelson Havi as the Chairman of the Board on 10th February 2023. Mr Havi replaced Mr Ab-dirahin H. Abdi. In addition, Mr Ambrose Ogango was appointed to represent the National Treasury on the Board replacing Mr Joseph Z. Ngugi.
Please join me in welcoming these great gentlemen to the RBA family. Their arrival strengthens the Board to continue to set the overall strategy and direction for the Authority.
Strengthening the Staff complement
Following approval of the Authority’s Human Resource
Instruments, the Board of Directors granted approval for the commencement of recruitment of officers to vari-ous positions as part of its first phase of recruitment.
The CEO’s Message
- NSSF Act No. 45 of 2013. RBA is processing opt out requests.
- KNEST and Hustler Fund. RBA is part of an interministerial committee to ensure Hustler Fund’s pension savings are in safe custody.
- Post-Retirement Medical Fund’s public par-ticipation is completed.
- Review is ongoing on housing regulations to allow members buy residential houses.
- RBA has appointed a committee to investi-gate unremitted contributions.
Mr Charles Machira
Chief Executive Officer
Retirement Benefits Authority
Consequently, the Board set out to advertise and recruit for the positions of Director in the Directorates of Cor-porate Services, Supervision and Internal Audit and Deputy Directors in the Supervision, Market Conduct and Finance Directorates. The Board is in the final stag-es of this exercise with results expected soon.
Further, the Board approved the Management to proceed with the recruitment of 16 officers in grades 4 to 9. The recruitment exercise is underway, and we believe that the additional staff will ensure higher per-formance, enhance our productivity, and enable us to complete tasks faster.
NSSF Act No. 45 of 2013
Following the commencement of the NSSF Act 2013, we are responsible for granting approvals to employers who wish to opt out of remitting Tier 2 contributions to the NSSF and remit these contributions through their registered retirement benefits schemes. We have al-ready started receiving requests for contracting out and have put in place measures to review these applications
